How To Get An EIN (Tax ID) Number In New Jersey
New Jersey has a robust business environment focused on the pharmaceutical, financial, telecom, food processing, and tourism industries. The state has slightly higher business costs than the average for the country, but it compensates by offering a very well-educated workforce.
If you’re thinking about starting or buying a business in this state, one of your first steps will be to get a New Jersey EIN number and a New Jersey tax ID number. This guide outlines what you need to do to get these tax ID numbers. Then, it answers FAQs about the process.
How To Apply For A Tax ID Number In New Jersey
To apply for an EIN number New Jersey residents need to prepare information for the application. Then, they can choose if they want to complete the process online or through the mail. However, first, you need to determine if you need this number. If any of the following apply, you need an EIN:
● You plan to hire an employee — You need the EIN before you cut your first payroll check.
● You need to withhold taxes from contractor pay — You only need an EIN for contractors if you need to withhold tax or if you don’t want to put your personal tax ID on their tax documents.
● Your business is a partnership or corporation — Then, the business needs to file a standalone federal tax return which requires an EIN. You can file a Schedule C for a sole proprietorship without an EIN.
● You’re changing the structure of your business — For example, you’re switching from a sole proprietorship to a partnership.
● You’re an LLC that wants to elect to be taxed as an S-corp — You need to apply for an EIN if you don’t have one already.
● You’re buying an existing business — Don’t use the EIN from the previous owner. You must get your own.
● You want to open a bank account or apply for a loan in your business’ name — Banks use EINS to identify their business clients, just as they use Social Security Numbers to identify their individual clients.
You may also need an EIN if you’re starting a retirement account or if you’re going to file a tax return for a trust or an estate. Non-profits also need this number. Keep reading for a deeper look at the application process.
Prepare The Required Information
Now you know whether or not you need a New Jersey EIN number. So, you’re probably wondering what details you need to apply. Gather the following:
● Business name, address, and phone number.
● The name and tax ID number of a responsible party.
● If the business is a limited liability company (LLC) or a corporation.
● Principal business activity.
● Number of employees.
● The date you first plan to pay wages.
● The reason you’re applying for an EIN.
Once you have these details, you can start the online application or fill out a paper form to mail it in.
To get an almost instant EIN number New Jersey residents should apply online. The process takes about 15 to 30 minutes, but once you’re done entering the information, you should get your number right away.
Submit Your Application Via Mail
If you have a bit more time, you can print and mail Form SS-4. Filling out a paper application allows you to take as much time as you need to gather the details, but in exchange, you should expect to wait six to eight weeks for your number to arrive in the mail.
Frequently Asked Questions
Before applying for an EIN number New Jersey residents generally have a lot of questions. Here are some of the most common questions new entrepreneurs tend to have.
An EIN is a federal tax ID that you put on federal tax forms. Almost all New Jersey businesses need an EIN. The only time you don’t need this number is if you run a sole prop, and you have no employees, no business bank accounts, and no federal excise taxes.
The NJ Secretary of State helps with business formation activities. They do not issue EINs. They also don’t issue state tax IDs. EINs come from the IRS, while state tax IDs come from the NJ Division of Taxation.
These numbers are not the same. You use the New Jersey tax ID number on forms for state taxes in New Jersey. You use the federal number on federal tax forms.